Q1 FY17 SaaS and PaaS Revenues Expected to Be Up 75% to 80%
REDWOOD SHORES, CA–(Marketwired – Jun 16, 2016) – Oracle Corporation (NYSE:
ORCL) today announced fiscal 2016 Q4 results.
Total Q4 Revenues were $10.6 billion, down 1% in U.S. dollars and
flat in constant currency. Cloud plus On-Premise Software Revenues were
$8.4 billion, flat in U.S. dollars and up 2% in constant currency. Cloud
software as a service (SaaS) and platform as a service (PaaS) revenues
were $690 million, up 66% in U.S. dollars and up 68% in constant
currency. Total Cloud revenues, including infrastructure as a service
(IaaS), were $859 million, up 49% in U.S. dollars and up 51% in constant
currency. Operating Income was $4.0 billion, and Operating Margin was
37%. Non-GAAP Operating Income was $4.8 billion, and the non-GAAP
Operating Margin was 45%. Net Income was $2.8 billion while non-GAAP Net
Income was $3.4 billion. Earnings Per Share was $0.66, while non-GAAP
Earnings Per Share was $0.81. Without the impact of the U.S. dollar
strengthening compared to foreign currencies, Oracle’s reported GAAP
Earnings Per Share would have been 2 cents higher and non-GAAP Earnings
Per Share would have been 1 cent higher.
Short-term deferred revenues were $7.7 billion, up 6% in U.S. dollars
and up 7% in constant currency compared with a year ago. Operating cash
flow on a trailing twelve-month basis was $13.6 billion.
For fiscal 2016, Total Revenues were $37.0 billion, down 3% in U.S.
dollars and up 2% in constant currency. Cloud plus On-Premise Software
Revenues were $29.0 billion, down 2% in U.S. dollars and up 3% in
constant currency. Cloud SaaS and PaaS revenues were $2.2 billion, up
49% in U.S. dollars and up 52% in constant currency. Total Cloud
revenues, including IaaS, were $2.9 billion, up 36% in U.S. dollars and
up 40% in constant currency. Operating Income was $12.6 billion, and
Operating Margin was 34%. Non-GAAP Operating Income was $15.8 billion
and non-GAAP Operating Margin was 43%. Net Income was $8.9 billion while
non-GAAP Net Income was $11.2 billion.
Earnings Per Share was $2.07, while Non-GAAP Earnings Per Share was
$2.61. Without the impact of the U.S. dollar strengthening compared to
foreign currencies, Oracle’s reported GAAP and non-GAAP Earnings Per
Share would have been 17 cents higher.
“Fourth quarter SaaS and PaaS revenue growth accelerated to 68% in
constant currency, significantly higher than my guidance,” said Oracle
CEO, Safra Catz. “SaaS and PaaS gross margins continued to improve
throughout the year, exiting FY16 at 56%. Bookings in Q4 were also very
strong enabling us to raise our guidance for Q1 SaaS and PaaS revenue
growth, which we now expect to be between 75% and 80%.”
“We added more than 1,600 new SaaS customers and more than 2,000 new PaaS customers in Q4,”
said Oracle CEO, Mark Hurd.
“In Fusion ERP alone, we added more than 800 new cloud customers.
Today, Oracle has nearly 2,600 Fusion ERP customers in the Oracle Public
Cloud — that’s ten-times more cloud ERP customers than Workday.”
“We expect that the SaaS and PaaS hyper-growth we experienced in FY16 will continue on for the next few years,” said
Oracle Executive Chairman and CTO, Larry Ellison.
“That gives us a fighting chance to be the first cloud company to reach
$10 billion in SaaS and PaaS revenue. We’re also very excited about the
availability of version 2 of Oracle’s Infrastructure as a Service
(IaaS) — which will enable us to speed up the growth of our IaaS
business, which customers want to buy in conjunction with our SaaS and
PaaS.”
The Board of Directors also declared a quarterly cash dividend of
$0.15 per share of outstanding common stock. This dividend will be paid
to stockholders of record as of the close of business on July 6, 2016,
with a payment date of July 27, 2016.
Q4 Fiscal 2016 Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these
results at 2:00 p.m. Pacific. You may listen to the call by dialing
(816) 287-5563, Passcode: 425392. To access the live webcast of this
event, please visit the Oracle Investor Relations website at
http://www.oracle.com/investor. In addition, Oracle’s Q4 results and fiscal 2016 financial tables are available on the Oracle Investor Relations website.
A replay of the conference call will also be available by dialing (855) 859-2056 or (404) 537-3406, Pass Code: 28515799.
About Oracle
Oracle offers a comprehensive and fully integrated stack of cloud
applications and platform services. For more information about Oracle
(NYSE: ORCL), visit
www.oracle.com or contact Investor Relations at (650) 506-4073.
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“Safe Harbor” Statement: Statements in this press release
relating to Oracle’s future plans, expectations, beliefs, intentions and
prospects, including statements regarding our future guidance, and
expectations of future SaaS, PaaS and IaaS growth, are “forward-looking
statements” and are subject to material risks and uncertainties. Many
factors could affect our current expectations and our actual results,
and could cause actual results to differ materially. We presently
consider the following to be among the important factors that could
cause actual results to differ materially from expectations: (1) Our
cloud computing strategy, including our Oracle Cloud SaaS, PaaS, IaaS
and data as a service offerings, may not be successful. (2) If we are
unable to develop new or sufficiently differentiated products and
services, or to enhance and improve our products and support services in
a timely manner or to position and/or price our products and services
to meet market demand, customers may not buy new software licenses,
cloud software subscriptions or hardware systems products or purchase or
renew support contracts. (3) If the security measures for our software,
hardware, services or Oracle Cloud offerings are compromised or if such
offerings contain significant coding, manufacturing or configuration
errors, we may experience reputational harm, legal claims and financial
exposure. (4) We may fail to achieve our financial forecasts due to such
factors as delays or size reductions in transactions, fewer large
transactions in a particular quarter, fluctuations in currency exchange
rates, delays in delivery of new products or releases or a decline in
our renewal rates for support contracts. (5) Our international sales and
operations subject us to additional risks that can adversely affect our
operating results, including risks relating to foreign currency gains
and losses. (6) Economic, geopolitical and market conditions, including
the continued slow economic recovery in the U.S. and other parts of the
world, can adversely affect our business, results of operations and
financial condition, including our revenue growth and profitability,
which in turn could adversely affect our stock price. (7) We have an
active acquisition program and our acquisitions may not be successful,
may involve unanticipated costs or other integration issues or may
disrupt our existing operations. A detailed discussion of these factors
and other risks that affect our business is contained in our SEC
filings, including our most recent reports on Form 10-K and Form 10-Q,
particularly under the heading “Risk Factors.” Copies of these filings
are available online from the SEC or by contacting Oracle Corporation’s
Investor Relations Department at (650) 506-4073 or by clicking on SEC
Filings on Oracle’s Investor Relations website. All information set
forth in this press release is current as of June 16, 2016. Oracle
undertakes no duty to update any statement in light of new information
or future events.
CONTACT INFORMATION
- Contact:
Ken Bond
Oracle Investor Relations
1.650.607.0349
Email Contact
Deborah Hellinger
Oracle Corporate Communications
1.212.508.7935
Email Contact
